On July 7, 2026, the County of Santa Barbara Board of Supervisors approved a budget revision that restores 15 full-time positions in the County Health Department (CHD), made possible bynewly observed State revenue.
The additional funding comes from the State’s decision to extend the higher Prospective Payment System (PPS) reimbursement rate for Medi-Cal beneficiaries with Unsatisfactory Immigration Status (UIS) for one more year. The State had previously planned to shift these patients to a lower fee-for‑service rate beginning July 1, 2026, which would have reduced County Health revenues by approximately $6.6 million.
“We are grateful for the State’s decision to maintain the higher reimbursement rate for another year,” said County Health Director Mouhanad Hammami. “This allows us to increase health center positions to accommodate new workflows and increase productivity so that we can sustain these roles beyond next year. Our clinical team is committed to maximizing patient access, improving efficiency, while providing the same high-quality care our patients expect at each appointment.”
Restored positions include seven Staff Nurses, two Administrative Office Professionals, two Financial Office Professionals, two Medical Assistants, one Health Education Assistant, and one Pharmacy Technician.
Restoring these roles increases CHD’s support staff‑to‑provider ratio from 2.50 to 2.85, improving capacity in clinics and helping staff adjust to new scheduling models and workflows. The Health Department has already begun implementing efficiency improvements, including enhanced scheduling processes, expanding a centralized appointment line, and proactive management of no-shows and cancellations.
While the PPS extension provides short-term stability, the funding is one-time and limited to FY 2026–27, making productivity gains essential for sustaining these roles beyond next year.
The County’s Fiscal Year 2026–27 Operating Budget, totaling $1.66 billion, was adopted on June 16, 2026—before the State finalized its budget. Due to projected State and Federal funding reductions at the time, 77 County employees at the time were slated to be laid off. Following weeks of departmental placements, transfers, and vacancies created through voluntary turnover, the number of separations on July 1, 2026, due to layoff was 51. The restoration of these 15 County Health positions will ultimately decrease the number of employees who were separated during budget cuts and this budget revision to 36.
The County Executive Office will provide an update on the State’s budget impacts to the Board of Supervisors on August 18, 2026.
